UPWK declines to lowest close ever
Upwork Inc. (UPWK) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, UPWK ended the week -8.26% lower at 9.22 after tanking $0.41 (-4.26%) today, strongly underperforming the S&P 500 (-0.9%). This is the biggest single-day loss in over three weeks. Today's close at 9.22 marks the lowest recorded closing price ever. Trading $0.14 higher after the open, Upwork was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, UPWK lost -3.21% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (UPWK as at Jan 24, 2020):
Friday's trading range has been $0.31 (3.33%), that's slightly below the last trading month's daily average range of $0.35. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for UPWK.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Crossing below the lower Bollinger Band for the first time since January 7th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 10.03 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Down Move" stand out. Its common bearish interpretation has been confirmed for Upwork. Out of 12 times, UPWK closed lower 75.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 75.00% with an average market move of -0.60%.